Ghana: Fuel Prices To Remain Stable For Rest Of December

The Institute for Energy Security (IES) has predicted that fuel prices on the Ghanaian market will remain stable from now to the end of 2020.

The International Benchmark, Brent crude, sold at U.S$51.15 on Friday December 18, 2020, while WTI is trading at U.S$48.10.

According to IES, data analysed by its Economic Desk from the Foreign Exchange (Forex) market showed that the Ghanaian cedi lost its stability marginally against the U.S. dollar by 0.52 percent, trading at an average price of GH¢5.79 to the U.S. dollar over the period.

A statement issued by IES for the second pricing window said owing to the 7.06 percent increase in prices of International Benchmark- Brent crude, the 7.5 percent increase in prices of gasoline, the 9.3 percent increase in gasoline prices and the 0.52 percent decline of the local currency against the U.S. dollar, it foresees fuel on the domestic market remaining stable as “we go into the 2020 end of year festivities.”

REVIEW OF DECEMBER FIRST PRICING-WINDOW

Local Fuel Market Performance

For the period under review, fuel prices remained largely stable. Prices of petroleum products within the first Pricing-window of December 2020 saw majority of Oil Marketing Companies (OMCs) maintaining prices of Gasoline and Gasoil at the pump with some few of them increasing their prices in response to international developments. The current national average price of fuel per litre at the pump is pegged at GH₵ 4.57

For this Pricing-window, Zen Petroleum, Benab Oil, Petrosol and Frimps Oil sold the lowest price per litre of Gasoline and Gasoil at the pump according to IES Market-Scan.

World Oil Market

Brent crude price within the period experienced an increase of 7.06% in average price with the commodity being sold at $48.82 per barrel mark from the previous window’s average price of $45.49 per barrel mark. The increase in the average price of the commodity over the period is as a result of the strong demand for oil in Asia particularly. Also, the approval of vaccines against the pandemic in UK and Canada and other jurisdictions sent Brent Crude prices above the $50 mark. On Thursday, 10th December 2020, Brent closed trading at $50.25, the highest since the early days of March this year.

Finished products prices as monitored on Standard and Poor’s global Platts platform showed commensurate increases in the prices of Gasoline and Gasoil on the global fuel market within the period. Gasoline saw a 7.5% increase in prices closing the period at $415.32 per metric tonne from an earlier price of $385.27 per metric tonne. Gasoil prices also appreciated by 9.3% closing trading at the end of the period at $396.68 per metric tonne from a previous price of $362.89 per metric tonne.

Local Forex

Data analysed by the IES Economic Desk from the Foreign Exchange (Forex) market shows the Cedi lost its stability marginally against the U.S. Dollar by 0.52% trading at an average price of Gh¢5.79 to the U.S. Dollar over the period.

PROJECTIONS FOR DECEMBER 2020 SECOND PRICING-WINDOW

Owing to the 7.06% increase in prices of International Benchmark- Brent crude, the 7.5% increase in prices of Gasoline, the 9.3% increase in Gasoline prices and the 0.52% decline of the local currency against the U.S. Dollar; the Institute for Energy Security (IES) projects prices of fuel on the domestic market remaining stable as we go into the 2020 end of year festivities.

Signed:
Fritz Moses
Research Analyst, IES